What's in Store for Mettler-Toledo (MTD) in Q4 Earnings?

The company topped the Zacks Consensus Estimate in three of the trailing four quarters, while missed the same only once, recording average positive earnings surprise of 1.03%.

In the last reported quarter, Mettler-Toledo reported adjusted earnings of $5.12 per share, which increased 17.4% on a year-over-year basis. Moreover, the figure outpaced the Zacks Consensus Estimate by 13 cents.

Net sales of $734.85 million missed the Zacks Consensus Estimate of $739.76 million but were up 5.1% year over year.

The growth was driven by robust performance of Laboratory business across all geographies. Also, strong performance in China propelled growth.

For fourth-quarter 2018, the company anticipates local currency sales growth of 6%. Adjusted earnings are expected in the range of $6.72-$6.77 per share, up 13% year over year.

Let’s see how things are shaping up for this announcement.

Key Factors to Consider

Mettler-Toledo’s sales growth remains very specific to its segmental performance. The company’s well performing Laboratory segment has been driving top-line growth over the past few years.

Its strong product pipeline that includes robust analytical instruments, balances, auto-chem, to name a few, remains a positive for the to-be-reported quarter.

Further, Spinnaker sales and marketing programs are likely to drive the top and bottom lines. Additionally, the company remains confident of its position in the European as well as Chinese market.

However, its cost consolidation process associated with product inspection business is likely to impact the company’s performance in the Industrial segment. Additionally, Mettler-Toledo’s Retail segment is likely to experience sluggish growth due to its lumpy nature.

Further, the U.S.-China trade war regarding tariff is a major concern for the company’s export-import activities in China.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Mettler-Toledo currently has a Zacks Rank #3 and an Earnings ESP of 0.00%, making surprise prediction difficult.

Here are a few stocks worth considering as our model shows that these have the right combination of elements to deliver an earnings beat in the upcoming releases.

Vipshop Holdings Limited VIPS has an Earnings ESP of +5.26% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Square, Inc. SQ has an Earnings ESP of +6.06% and a Zacks Rank #2.

Gogo Inc. GOGO has an Earnings ESP of +9.46% and a Zacks Rank #2.

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